×

BOURBON: Press Release : Resilient adjusted revenues in 1st Quarter 2015: EU383.6 million, an increase of 15.2% year on year at current rates

PARIS, April 29, 2015 (GLOBE NEWSWIRE) -- "Following the quick and sharp drop in oil prices in late 2014, the low Brent price environment continued during the 1st quarter 2015 and market conditions remained difficult, while BOURBON's resiliency factors aided its performance," says Christian Lefèvre, Chief Executive Officer of BOURBON. "BOURBON has proactively responded to both the customers' requirements for lowering their cost of operation and to the impact of reduced utilization rates on BOURBON operating costs. A number of general agreements have been concluded with key customers on the basis of reciprocity: lower daily rates with better contract coverage and access to market.

This action plan provides BOURBON with higher visibility on its fleet utilization and allows proper planning of stacking/unstacking of vessels in the different regions where it operates, when needed. Proper and temporary stacking of vessels considerably reduces cash operating costs, which in turn reduces the impact of lower activity on adjusted EBITDAR/revenues margin.

There was also a quick and sharp drop of the euro and other currencies against the US dollar and this favorable foreign exchange rate environment positively impacts BOURBON's adjusted revenues, which will translate into additional adjusted EBITDAR generation in our Euro denominated accounts. Compared with the same period in 2014, the adjusted revenues increase in the 1st quarter 2015 benefitted from the foreign currency appreciation but was flat at constant exchange rates despite the increase in fleet size."

Christian Lefèvre also points out that "The resilience of 1st quarter adjusted revenues at constant rates reflects the continued demand for BOURBON's modern, efficient, standardized vessels. While the current oil price environment continues to impact the activity of oil & gas companies' capital spending plans, BOURBON is also continuing to focus on its own cost reductions efforts and vessel efficiency to deliver the best service possible to its clients."

Market impacts on BOURBON performance are reflected by the adjusted revenues reduction when compared to Q4 2014 at constant rates (-5.6%) stemming mainly from:

  • Average utilization rate excluding crew boats declining by 3.2 points to 84.3%
  • Average daily rate excluding crew boats declining 2.9% and marginal increase in fleet size
  • No impact yet of favorable conditions made to customers

In € millions, except as noted Quarter
Q1 2015 Q1 2014
(restated)
V 2015/2014 Q4 2014
(restated)
Operational indicators
Number of vessels (FTE)* 500.0 483.9 +3.3% 497.5
Number of vessels (end of period)** 501 498 +3 vessels 505
Average utilization rate (excl. crew boats, in %) 84.3% 90.6% -6.3 pts 87.5%
Average daily rate (excl. crew boats, in US$/d) 19,301 19,497 -1.0% 19,871
Adjusted Revenues a
Marine Services 312.2 274.3 +13.8% 314.3
Deepwater offshore vessels 113.8 95.1 +19.7% 111.4
Shallow water offshore vessels 123.5 106.6 +15.8% 127.8
Crew boats 74.9 72.6 +3.2% 75.0
Subsea Services 67.1 54.6 +22.8% 67.6
Other 4.3 4.1 +5.8% 6.6
Total adjusted revenues
(change at constant rate)
383.6 333.0

+15.2%
+1.6%
388.5
-5.6%
IFRS 11 impact*** (27.4) (13.0) (25.5)
Group TOTAL 356.3 320.0 +11.3% 363.0

(*) FTE: Full Time Equivalent; (**) Vessels operated by BOURBON (including vessels owned or on bareboat charter)
(***) Effect of consolidation of jointly controlled companies using the equity method
(a) See page 2

(a) Adjusted data:

The adjusted financial information is presented by Activity and by Segment based on the internal reporting system and shows internal segment information used by the principal operating decision maker to manage and measure the performance of BOURBON (IFRS 8). As of January 1, 2015, the internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures on which the group has joint control using the full integration method. Adjusted comparative figures are restated accordingly.

MARINE SERVICES

Quarter
Q1 2015 Q1 2014
(restated)
V 2015/
2014
Q4 2014
(restated)
Adjusted Revenues (in € millions) 312.2 274.3 +13.8% 314.3
Number of vessels (end of period)* 479 479 No change 483
Average utilization rate 79.2% 82.4% -3.2 pts 81.7%

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

All segments had a reduction in activity during the 1st quarter. Average daily rates were down slightly year on year with declines in all Marine Services segments. The increase in adjusted revenues year on year was mostly due to improved foreign exchange rates. Utilization rates declined in all segments compared with Q1 2014, as market conditions continued to put pressure on utilization rates, particularly in the North Sea and Asia, while Brazil showed relative strength.

Marine Services: Deepwater offshore vessels

Quarter
Q1 2015 Q1 2014
(restated)
V 2015/
2014
Q4 2014
(restated)
Adjusted Revenues (in € millions) 113.8 95.1 +19.7% 111.4
Number of vessels (end of period)* 79 73 +6 vessels 79
Average utilization rate 86.0% 88.6% -2.6 pts 85.8%
Average daily rate (US$/day) 21,942 22,839 -3.9% 23,093

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

The higher adjusted revenues compared with the same quarter last year were aided by an increase in the fleet by 6 vessels and improved foreign exchange rates. These helped somewhat to offset the decline in average utilization rates and averages daily rates. Almost all regions were affected by the current market conditions, most notably in Asia and the North Sea. In Brazil, both average utilization rates and average daily rates increased as a result of new contracts signed during the quarter. The slight increase in sequential average utilization rates was primarily due to reduced maintenance in the 1st quarter 2015.

Marine Services: Shallow water offshore vessels

Quarter
Q1 2015 Q1 2014
(restated)
V 2015/
2014
Q4 2014
(restated)
Adjusted Revenues (in € millions) 123.5 106.6 +15.8% 127.8
Number of vessels (end of period)* 138 130 +8 vessels 139
Average utilization rate 84.5% 91.2% -6.7 pts 89.1%
Average daily rate (in US$/day) 13,882 14,199 -2.2% 14,452

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

Compared with the 1st quarter of the prior year, the shallow water segment had declines in both average daily rates and average utilization rates, which were offset by the strong foreign exchange rate impacts and a larger fleet. Asia showed the weakest market during the quarter relative to the other regions, and average utilization rates declined in all regions, due to weak market conditions.

Marine Services: Crew boat vessels



Quarter
Q1 2015 Q1 2014
(restated)
V 2015/
2014
Q4 2014
(restated)
Adjusted Revenues (in € millions) 74.9 72.6 +3.2% 75.0
Number of vessels (end of period) 262 276 -14 vessels 265
Average utilization rate 74.4% 76.6% -2.2 pts 76.7%
Average daily rate (in US$/day) 4,934 5,323 -7.3% 5,067

Slight increase in adjusted revenues year on year despite the net reduction of the fleet due to the sale of several older vessels is partially due to foreign exchange rate improvements. Both average daily rates and average utilization rates declined, reflecting the reduced activity in this segment, most notably in the largest crew boats, the FSIV vessels, as contract renewals have not been as consistent as in the past.

Subsea Services

Quarter
Q1 2015 Q1 2014
(restated)
V 2015/
2014
Q4 2014
(restated)
Adjusted Revenues (in € millions) 67.1 54.6 +22.8% 67.6
Number of vessels (end of period)* 21 18 +3 vessels 21
Average utilization rate 75.9% 94.4% -18.5 pts 82.8%
Average daily rate (in US$/day) 50,118 45,407 +10.4% 48,063

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

The increase in average daily rates compared with the 1st quarter of last year is largely due to the mix effect of larger vessels that joined the fleet since the year ago period. Lower average utilization rates versus the same period a year ago reflects the reduced activity in the segment.

Other

Quarter
Q1 2015 Q1 2014
(restated)
V 2015/
2014
Q4 2014
(restated)
Adjusted Revenues (in € millions) 4.3 4.1 +5.8% 6.6

Using chartered vessels has two advantages for BOURBON: it makes it possible to meet client demands and generate contracts while new vessels are being built and added to the fleet. Using chartered vessels also enables BOURBON to offer vessels that are not part of its regular line of services when needed for global calls for tenders. Volatility of "Other" adjusted revenues is largely due to the variation in the number of chartered vessels during the period.

OUTLOOK

The oil services industry is in the middle of a down cycle due to the sharp drop in the oil price per barrel. Capital investments by BOURBON's clients are down, 15% for the majors and up to 30% for the independents, with cost reduction plans that are unprecedented being put in place. In this context, BOURBON benefits from resiliency factors to face this new environment:

  • BOURBON's operational performance (safety, technical availability rate of the fleet, employee commitment) is widely recognized by its clients
  • Adjusted revenues are well balanced across 4 segments of activity: Deepwater, Shallow water, Crew boats and Subsea IMR activities
  • Its customer base is well diversified and it has a worldwide geographical footprint (excluding the USA, due to the Jones Act) through local partnerships; BOURBON can therefore meet the needs of majors, national oil companies and also independent operators and contractors
  • BOURBON wishes to maximize its utilization rate while offering optimal prices to clients for its services; many clients are also taking into consideration the reduced fuel consumption of BOURBON's vessels as part of their selection criteria

The group's focus on cost reduction is permanent and can be seen by the temporary stacking of certain vessels which have no anticipated activity for the following 3 months. These vessels are stacked in a protected harbor, thereby drastically reducing their costs. Today, 23 supply vessels are stacked.

BOURBON is adjusting and more than ever, in 2015, will be relying on 4 pillars:

  • Excellence in service execution
  • Drastically reducing costs
  • Being close to customers, listening to them with the aim of favoring the utilization rates of its vessels
  • The commercialization of the fleet and services in regional facilities, with the contribution of local partners

In this context, BOURBON anticipates a stable or slight decrease in adjusted revenues for 2015 and a slight decrease in the margin of adjusted EBITDAR/ revenues.

MAJOR OPERATIONS AND HIGHLIGHTS

  • Following the initial issue of €100 million of perpetual deeply-subordinated notes BOURBON has increased this amount by €20 million, under the same terms and conditions of the original issue

ADDITIONAL INFORMATION

  • BOURBON's results will continue to be influenced by the €/US$ exchange rate

FINANCIAL CALENDAR

Annual Shareholder's Meeting May 21, 2015
2015 1st Half Financial Information press release August 5, 2015
2015 1st Half Results press release and presentation September 9, 2015
2015 3rd Quarter Financial Information press release November 4, 2015

APPENDIX I

Quarterly adjusted revenue breakdown

In € millions 2015 2014 (restated)
Q1 Q4 Q3 Q2 Q1
Marine Services 312.2 314.3 289.8 277.5 274.3
Deepwater offshore vessels 113.8 111.4 106.3 98.9 95.1
Shallow water offshore vessels 123.5 127.8 112.9 108.3 106.6
Crew boats 74.9 75.0 70.6 70.3 72.6
Subsea Services 67.1 67.6 65.7 56.2 54.6
Other 4.3 6.6 6.1 4.2 4.1
Total adjusted revenues 383.6 388.5 361.7 337.9 333.0
IFRS 11 impact* (27.4) (25.5) (20.8) (15.3) (13.0)
TOTAL CONSOLIDATED** 356.3 363.0 340.8 322.6 320.0

* Effect of consolidation of joint ventures using the equity method
**Consolidated 2013 figures have been restated according to the implementation of the new accounting standards

Quarterly average utilization rates for the BOURBON offshore fleet

In % 2015 2014
Q1 Q4 Q3 Q2 Q1
Marine Services 79.2 81.7 79.4 80.0 82.4
Deepwater offshore vessels 86.0 85.8 85.7 87.2 88.6
Shallow water offshore vessels 84.5 89.1 86.6 87.8 91.2
Crew boats 74.4 76.7 74.0 74.3 76.6
Subsea Services 75.9 82.8 81.1 83.9 94.4
"Total fleet excluding Crew boats" 84.3 87.5 85.8 87.3 90.6
"Total fleet" average utilization rate 79.1 81.7 79.4 80.2 82.8

Quarterly average daily rates for the BOURBON offshore fleet

In US$/day 2015 2014
Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 21,942 23,093 23,887 23,219 22,839
Shallow water offshore vessels 13,882 14,452 14,152 14,006 14,199
Crew boats 4,934 5,067 5,113 5,197 5,323
Subsea Services 50,118 48,063 50,992 46,868 45,407
"Total fleet excluding Crew boats" average daily
rate
19,301 19,871 20,247 19,588 19,497

Quarterly number of vessels (end of period)

In number of vessels* 2015 2014
Q1 Q4 Q3 Q2 Q1
Marine Services 479 483 481 481 479
Deepwater offshore vessels 79 79 75 74 73
Shallow water offshore vessels 138 139 135 133 130
Crew boats 262 265 271 274 276
Subsea Services 21 21 19 19 18
FLEET TOTAL 500 504 500 500 497

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

Quarterly deliveries of vessels

In number of vessels 2015 2014
Q1 Q4 Q3 Q2 Q1
Marine Services 0 10 5 8 12
Deepwater offshore vessels 0 5 1 1 2
Shallow water offshore vessels 0 4 2 3 6
Crew boats 0 1 2 4 4
Subsea Services 0 2 0 1 2
FLEET TOTAL 0 12 5 9 14

Breakdown of BOURBON adjusted revenues by geographical region

In € millions 2015 2014 (restated)
Q1 Q4 Q3 Q2 Q1
Africa 219.8 227.2 205.3 190.8 194.4
Europe & Mediterranean/Middle East 59.1 65.3 60.6 55.9 54.2
Americas 64.2 49.6 49.1 46.9 43.8
Asia 40.5 46.4 46.8 44.4 40.7

Other key indicators

Quarterly breakdown

2015 2014
Q1 Q4 Q3 Q2 Q1
Average €/US$ exchange rate for the quarter (in €) 1.13 1.25 1.33 1.37 1.37
€/US$ exchange rate at closing (in €) 1.08 1.21 1.26 1.37 1.38
Average price of Brent for the quarter (in US$/bbl) 54 76 102 110 108

About BOURBON

Among the market leaders in marine services for offshore oil & gas, BOURBON offers the most demanding oil & gas companies a wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms. These extensive services rely on a broad range of the latest-generation vessels and the expertise of more than 11,000 skilled employees. Through its 29 operating subsidiaries the group provides local services as close as possible to customers and their operations throughout the world, of the highest standards of service and safety.

BOURBON provides two operating Activities (Marine Services and Subsea Services) and also protects the French coastline for the French Navy.

In 2014, BOURBON'S revenue came to €1,346.4 million and as of March 31, 2015, the company operated a fleet of 501 vessels. Under the "BOURBON 2015 Leadership Strategy" plan, the group has built a vast fleet of innovative, high-performance mass produced offshore vessels.

Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment A.

Contacts

BOURBON

Investor Relations, analysts, shareholders
James Fraser, CFA
+33 491 133 545
james.fraser@bourbon-online.com

Corporate Communications
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com

Media relations agency
Publicis Consultants

Jérôme Goaer
+33 144 824 624
jerome.goaer@consultants.publicis.fr
Véronique Duhoux
+33 144 824 633
veronique.duhoux@consultants.publicis.fr
Vilizara Lazarova
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr

PDF version http://hugin.info/159569/R/1916130/685049.pdf

HUG#1916130

Source: BOURBON